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Understanding Debt
Before you can start creating a debt repayment plan, you need to understand what debt is and how it can ultimately impact your finances. Simply put, debt refers to any money that you owe to a lender or creditor. Find extra information about the subject in View this additional knowledge source suggested external resource. alltran financial , keep learning!
There are two main types of debt: secured and unsecured. Secured debt is tied to an asset, such as a car or house. Unsecured debt, on the other hand, is not tied to an asset but is instead based on your creditworthiness and financial history.